FIMA adoption in Shiimi’s hands

The Namibian Financial Institutions Supervisory Authority (Namfisa) says the adoption of the Financial Institutions Market Act (FIMA) rests in the hands of finance minister Ipumbu Shiimi.

Giving an update on FIMA, Namfisa CEO Kenneth Matomola said the Act had been taken through extensive scrutiny owing to its slowed implementation. This follows concerns around the adoption of proposed pension preservation rules that would allow beneficiaries access to only 25% of their retirement benefits before they reach retirement age. The remaining 75% will be paid out in monthly instalments upon retirement.

The proposed preservation rules caused public uproar once they came to light.

“As it stands now, FIMA can only come into force once the minister says 'yes, let’s go ahead and implement'. Given what has happened, the minister said, 'okay, maybe there was no broad consultation on a legislation or subordinate legislation on pension benefits, or the preservation thereof',” Matomola said on the likely delay behind the adoption of FIMA.

Deep dive

The Standing Committee on Economics and Public Administration had also taken a deep dive into FIMA following the public outcry around the pension preservation rules, Matomola explained.

“Given that this is an Act of Parliament, when there was a little bit of unease among the public, the committee summoned stakeholders and they interrogated the issues that they had with FIMA, and a report was drawn up and presented in Parliament. That report has recommendations and the recommendations need to be addressed,” he said.

Despite public resistance, the Act would serve the public well, he assured, while stressing the need for increased public consultation around FIMA.

“There are quite a lot of good things that are in FIMA. We need to bring everybody along so that they can understand what the benefits are. FIMA is quite technical - not everybody understands it, so we need to bring everybody along so that they understand."